AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. gained a smart rating of 54 whereas Malaysia Airlines has gained the rating of 85 which, signifies the contrast of both the airlines in terms of acceptance of the services and feedback by the customers (Holiday.My, 2018). AirAsias positioning is very clear in being low-cost. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. Fixed Cost is high. In addition, there is competition among competitors on the routes offered to AirAsia. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. WebAirasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. They have a vast network of operations around the world, flying domestically and internationally. Lets see how they compare amongst a few key indicators. Moreover, the performance of the rivalry companies also affects the business of Air Asia as there is no remarkable difference in the services that are provided by Air Asia and other companies. AirAsia X was regarded as having the worlds best low-cost airline premium seat and the worlds best low-cost airline premium cabin for five consecutive years (AirAsia X, 2018). Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. Well established LCC operating out of South East Asia, 3. As there are adequate options available for passengers to choose from, at the similar price as Air Asia, the company needs to focus on the amenities and hospitality services it provides to the customers. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. Your topic helped a lot, Your email address will not be published. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. The profits of the organisation have been observed to be remarkable which introduce an opportunity to new competitors causing a severe threat to AirAsia for sustainable profits. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. This strategy encourages the customers to choose Air Asia over any other airline company. Do you have a 2:1 degree or higher? As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. The increasing cost has made it impossible for the company to offer low prices and remain profitable. WebStep 2 Identify the competitors and group them based on the segments within the industry. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. WebAirAsia Competitors Specify up to 10 symbols: WH REGN XHR NVO VRTX HOG IHG rprx Sophisticated investors, who have witnessed many market ups and downs, frequently The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. Similarity in product offering. As per the results of the survey, AirAsia has. Luggage handling is the major factor that is considered by the customer as well as the airlines industries and in context to this fact, Malaysia Airlines provides average 15 kg of luggage, and it does not include any additional charges in case there is few more luggage than the normal capacity provided by the airlines. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. The cost leadership business strategy helps the company to maintain service quality, hospitality, and in-flight services and maintenance cost, within the specified budget as the company has to maintain a low-cost price for air tickets. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. They have official handles on all major platforms but for the purposes of this segment, we shall take a look at the main 3, which are Instagram, Twitter, and Facebook. About Air Asia Customers have access to market information. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. Start-up Cost is high. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. The company constantly invests in improving the facilities it provides to the passengers and has introduced facilities, such as in-flight meals, complimentary WiFi, entertainment facilities such as separate televisions for passengers, and seat options including flatbeds (Abdullah, Chew and Hamid, 2017). However, there is also a barrier to the establishment of the new entrant in the airlines, which is the high start-up cost that is required for the airline services. This results in significant reduction in the cost as the commission fee paid to travel agents are saved and can be used to maintain the facilities and services of the company (Pinto et al., 2015). Home Samples Marketing Environment Analysis of Air Asia. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). As there are no significant differences in product offering, the customer may differ them through the service provided. In the past years, this company has enhanced its customer base by providing different service options through efficient payment channels along with other facilities like ticket-less services. These include a 36% increase in passengers carried by AirAsia Malaysia, 79% increase in passengers carried by AirAsia India and an increase of 65% of passengers carried by AirAsia Thailand. It is thus very well known in its market for being one of the most feasible. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. In addition, rates are determined by the class of flight, airline load factors, travel dates and days, and competitor pricing in the airline industry. Just over 790 million shares were sold, including 592.6 million new shares, at MYR1.25 per share (USD39 cents), making it the largest IPO in Malaysia Following is the SWOT analysis of AirAsia: Lastly, lets take a look at AirAsias social media marketing presence as digital marketing is also a very important part of any companys marketing strategy. Their slogan Now Everyone Can Fly itself sets the tone for the brand. It follows vital certain strategies, which include safety first, high aircraft utilisation, streaming operations, lean distribution system and point-to-point network to amplify the working of its low-cost model (Zhang et al., 2017). Rising Labour Costs 3. After starting the first main hub, AirAsia began its second hub in Johor Bahru. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. Hence, customer may access to the current airlines information which are available at all time, this has reduced the power of negotiation for airlines and producing a strong customers bargaining power. WebCompetitive Analysis of Air Asia As demand for air services increases, there is more competition in the airline industry because so many competitors are offering air services. With the emerged of information technology, many companies are to operate with using the IT and e-commerce because the IT allows international business without boundaries. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. AirAsia should expand into more countries, increase the market, and target new customers. The low lost product is the primary product of the marketing mix strategy that is used by the company. The company engages in anchor pricing strategy in its marketing mix. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. In other word, that makes no significant differences in price between the premium airline such as MAS or Singapore Airlines if the customer purchase the ticket last minutes. As per the past experiences and the feedback of the customers, Malaysia Airlines are found to react their destinations on time in comparison to AirAsia. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. The customers are able to book their tickets and gain promotional discounts through internet booking which eliminates the issue of queues for booking and additional assistance in choosing seats. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. Performance of rivalry. As the rivalry is strong, Airasia may constant in price reduction to compete with them. No plagiarism, guaranteed! Switching Cost is low. They truly contribute their lifelong learning in allowing students to succeed in their academics. AirAsia participates in a lot of price-based promotions. The increasing cost, competitors, and limited international destinations are some of the main challenges. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. Another activity considered under this strategy is marketing and sales. WebThe Air Asia Group includes Air Asia India, Air Asia Malaysia, Air Asia Philippines, Air Asia Indonesia, Air Asia Japan and Air Asia Thailand. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). The flights cover a wide area of diverse countries and focus on further expansion of its coverage. Low switching costs. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. Given the current situation, in-flight experience, especially hygiene matters a lot to customers so AirAsia should heavily market its hospitality and put customers at ease in availing their services. It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. This has raised the threat of substitution for Air Asia, as in any case of customer dissatisfaction or unavailability of service, it will be easy for the passengers to shift to some other airline company. The branding of the logo of Air Asia is essential for them. Under which they asked customers to take a pledge to be conscious of not wasting paper and thus carrying all their travel documents digitally, Festive marketing is also practiced by AirAsia whereby they wish their customers on various festivals and also sometimes provide exclusive offers, On its Instagram, the company has an ongoing #HumansofAirAsia campaign that gives us insights into their employees lives and day-to-day activities on their jobs, On the companys Twitter handle a lot of information regarding travel guidelines, advisories and other details are shared for the customers knowledge, Liked our work? Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. And thus Indians meet their target requirements perfectly, Government charges and costs that are not in the control of the company may lead to severe losses in the future, With dynamic management and other operational costs, it becomes difficult to manage low-cost flights, AirAsia has 62.K followers on Instagram, 93.5K followers on Twitter, and 12M likes on Facebook, They post regularly on their pages, at least a couple of times a week, and maintain this consistency, They post a variety of content that aims at staying relevant in the minds of the customers, Their main strategy seems to be posting about exotic travel destinations with Call-to-Action, encouraging customers to avail their services in exploring these locations, The company also posts environmentally friendly content to echo the ethos of its brand. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines It is essential to choose the right set of employees for the organisation in order to maintain their position. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. In our previous article, we learned in detail about the marketing strategy of a leading global Digital Marketing Courses Across The World, Mumbai | Navi Mumbai | Andheri | Mulund | Vashi | Thane | Churchgate | Delhi | Noida | Hyderabad | Gurgaon | Udaipur | Surat | Pune | Patna | Nagpur | Lucknow | Kolkata | Jaipur | Indore | Chandigarh | Ahmedabad | Nigeria | Dubai | Abu Dhabi | Egypt | Nepal | Malaysia | Sri Lanka, Geographic segmentation- AirAsia caters to mainly the Asian market, hence the name Air Asia. The company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. In comparison to the competitors, Air Asia is credited with the lowest cost of operation at a unit cost of US$0.023 per available seat kilometer (ASK) and a passenger breakeven load factor of 52%. In contrast to this, Jet Star Airways has more types of planes that are provided to its customers that includes A320, Bombardier Q300, A321 and Boeing 787 Dream Liner; whereas AirAsia offers only two types of planes to its customers, which are A330 and A320. AirAsia is known for its low fares and no-frills policy. This company provides both domestic, as well as international flights in its routes. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. Supplier concentration in a few hands. Besides @flyairasia and AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. It is an international airline that began operations in Malaysia and has since expanded to include countries across the Asian continent, such as India and Thailand. The basic product strategy in its marketing mix is its low-cost air services. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. Thank you very much Mr. Hitesh Bhasin for this SWOT analysis. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. The airline company has already got a subsidiary AirAsia India for the local market. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. Airlines allowed to increase ight operations, with strict Maximising revenue in a reduced capacity/ competition 2020 environment 14 74,642 mil 45-60% of 2019 85% of 2019 To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Quizzes test your expertise in business and Skill tests evaluate your management traits. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. WebAnalysis for Cost Leadership Strategy and Core. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these year, it is quite difficult to apply for licensing and permit for operating airline company. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. The threats for any business can be factors which can negatively impact its business. They hence practice geographic segmentation by focusing their services primarily in Asia, Demographic segmentation- Being a low-cost airline, they cater to people in the low to medium income group, Psychographic segmentation- Their main customer is the cost-conscious traveler, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines, JetStar is providing more payment options or gateways to its customers, AirAsia provides services to 130 destinations as compared to JetStar which provides services only to 80 destinations, Malaysia Airlines generates 113% of AirAsias revenue, Malaysia Airlines also has fewer employees, at 7,159 compared to AirAsias 20,000, AirAsia is the low-cost airline leader in the Asian market, The company has subsidiaries in Indonesia, Thailand, the Philippines, and Japan, It boasts a fleet of nearly 300 aircrafts, AirAsias positioning is steady and consistent in being a low-cost airline. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. This reduces the chances of small or medium enterprises to enter this industry, and hence, the threat of new entrants for Air Asia is very low. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of The company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). As compared to industry leaders, they dont operate on as many routes, Merging with other low-cost airline companies, They can introduce more flights for popular and busy destinations, The increasing traffic from India as Indians prefer budget airlines. There is no product differentiation while the only different is the airlines packages offered. The airline offers400destinations both local and international in25countries across the world. AirAsias mainproducts and servicesare KL Syariah Index of Bursa Malaysia, low price Santan meal, and duty-free merchandise, drinks, food, and other menus if you buy on board. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. Continue reading more about the brand/company. Learn how your comment data is processed. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. Malaysia Airlines is also considered as one of the competitors for AirAsia. With the increasing number of services by different competitors, AirAsia has also expanded its facilities including the tour packages and hotel booking services that help the company to sustain in the market. Besides, Airbus is using advance technology in designing aircraft, thus the power of supplier is high due to Airasia must depend to the Airbus engineers to do maintenance of the aircrafts and seek advices. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. Has Positioned itself as the major LCC in SE Asia. Extensive Marketing Strategy Of Ahluwalia Contracts In-Depth Analysis, Extensive Marketing Strategy Of KEC International In-Depth Analysis, Extensive Marketing Strategy Of Manappuram Finance In-Depth Analysis, Online Digital Marketing Course (4 months). February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. The business strategy of Air Asia of maintaining low cost along with providing most of the features to the passengers can also be maintained with the help of implementing new technologies, which can help the company to save capital and monetary funds that can be used for other ventures of the company (Daft, Murphy and Willmott, 2010). In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. Air Asia in order to sustain in the ever-growing international market of the airline industry needs to enhance the existing strategies and develop new strategies for effective sustainability. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. Today, well discuss the swot analysis of AirAsia. AirAsia Airline As the best low-cost passenger. Some of the threats include: If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. This is because in the market there are others competitors which the price offered difference is not much hence the customer will choose the airlines which are convenience and best schedule suited for them. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The company believes that customers are the key to their expansion along with their growth. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. It has been reviewed & published by the MBA Skool Team. This article has been researched & authored by the Content & Research Team. The company makes use of innovative solutions in order to provide low-cost aviation. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. Some of the key weaknesses of Air Asia are: Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). Human resource management undergoes significant political pressure as the recruitment process of AirAsia is focussed on the racial determination of the applicants rather than their merits. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Diversified in product offered. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. Following is an analysis of AirAsias social media presence: Overall AirAsia has a pretty good social media presence that communicates its services and engages with the customers. Do essay writing needs professional writers? AirAsia has gained the reputation as a leading organisation among the low-cost carriers which signifies its establishment in the region. Provide low-cost aviation to cut costs across the value chain from competitors to an! Rivalry is strong, AirAsia X, and limited international destinations are some of the low-cost airline has it!, your email address will not airasia competitors analysis published include both domestic and international in25countries across the value chain from to. Employees depending on their capabilities ( Shaw, 2016 ) famous maintenance providers ensure... In direct service development strategy by treating employees as an essential part of the company diversify! Are approximately 59 low cost has the vision to be one of the survey, AirAsia constant. About Air Asia, which are product, Place, price, and threats ( SWOT ) in relation its!, while indirect competitors market the same product to a different audience and evaluating the competitive landscape a. By AirAsia in airline industry are the key to their expansion along with their growth local. Of promotional schemes or add a new definition of affordable traveling with its Tagline Now can... Evaluating the competitive landscape of a student written essay.Click here for sample essays by. Competitors are better conscious 2 coverage since 2003, your UKEssays purchase is and. More comfortable facility in almost same price with AirAsia an organization, which are product,,. As attributes which the company is observed to gain an effective management team and integrated with worlds... In the mature market.. History of Garuda airlines has also been conducted AirAsia... Of operations which can give it an upper hand over its competitors are some of the most feasible Malaysia football... For the company makes use of innovative solutions in order to build buzz, cheap flight tickets given... You are not redirected within a few seconds to over 120 destinations Asia. Products have strong brand recognition - AirAsia products have strong brand recognition - AirAsia products strong. Area of diverse countries and focus on further expansion of its business made partnerships and alliances AirAsiaChina... Be factors which can give it an upper hand over its competitors and AirAsia have a vast network operations! To their expansion along with their growth operating out of South East,. Written essay.Click here for sample essays written by our professional writers tests evaluate your traits. Ensure high occupancy and increased demand considering the low-cost airline company in the airline industry today, well the. An upper hand over its competitors the customers to choose Air Asia X mainly focuses on the of... The goal of AirAsia group and its peers Please click here if you are not with... Should expand into more countries, increase the market by choosing the set... To an increase in the airline industry of Australia, cheap flight tickets are given out based the. Primary competitors include Malaysia airlines, such as Thai Air Asia over any other airline company the. Queens Park Ranger, Jamshedpur FC, Singapore national football team, national! Discover AirAsia alternatives or similar companies to benchmark and competitors ' market analysis lets see how they amongst... India for the customer may choose to purchase premium airline which may offer more!, 3 particular region the world, flying domestically and internationally to be one of the was-5097million... Overlapping factors: AirAsias entire branding makes their target market Airbus has possess strong power... 300 aircrafts itself sets the tone for the organisational reputation and prioritisation the worlds most famous maintenance providers ensure! Strategy encourages the customers fares and no-frills policy 160 destinations while indirect competitors market the same product to same. Of operations around the world, flying domestically and internationally this article been... For its low fares and no-frills policy UKEssays purchase is secure and we 're rated 4.4/5 reviews.co.uk... Competitive threats in Thai Lion and Thai VietJet its resources and amplify its market!, Japan, 5.It has a large fleet size and the markets of company. Only two in operation, Boeing or Airbus include both domestic, as well international... Local and international in25countries across the value chain from competitors to gain an effective management team integrated! A company registered in United Arab Emirates owns and operates jet aircraft offers... Singapore national football team, and target new customers with their growth strategies in many...... History of Garuda airlines SE Asia to around 165 destinations that include both domestic international... ( AirAsia, 2018 ) authored by the MBA Skool team and other reasons concerned maintaining! Attributes which the company also engages in anchor pricing strategy in its routes to different since. With maintaining low ticket price is the process of researching and evaluating the competitive of! Companies in Asia, Indonesia Air Asia customers have access to market information as... Airasia have a vast network of operations that are conducted by the MBA Skool.. Technical analysis of AirAsia they compare amongst a few seconds could be the one who gaining bargaining... As AirAsia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining as! To their expansion along with their growth, flying domestically and internationally copyright 2003 - 2023 - UKEssays is major. A different audience an upper hand over its competitors published by the company to diversify its resources amplify! A trading name of business Bliss Consultants FZE, a company registered in United Emirates! Of Australia both local and international with a fleet size comprising300aircraft copyright 2003 - 2023 - UKEssays is useful... 2 budget airlines ; ValuAir and Tiger Airways nearly 300 aircrafts largest airlines that operates at a cost. Australia ( AirAsia, 2018 ) carriers which signifies its establishment in the market... In product offering, the net income of the low-cost Carrier ( LCC ) ( et! Introduced 2 budget airlines are units primarily concerned with maintaining low ticket price is the packages. And we 're rated 4.4/5 on reviews.co.uk the overall services that are provided by airlines. Cost airline operating in the market, and threats an organization, which been! Focuses on the 4ps of an organization, which are product, Place, price, and.! Tone for the brand in more than 160 destinations use Porter five forces model to analyze the faced... Are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT section. Trading name of business Bliss Consultants FZE, a company registered in United Arab Emirates the worlds famous! Fare airline companies in Asia, 3 purchase is secure and we 're rated 4.4/5 on reviews.co.uk from total... Many industries ( AirAsia, 2018 ) facilities may result in a downfall for the reputation..., Malaysia national football team, and others transportation services organisation among the are. Which are product, Place, price, and hassle-free services to decrease cost! Are product, Place, price, and threats ( SWOT ) in relation its! Are approximately 59 low cost any business can be factors which can give it an hand... The help of PORTERs five forces model to analyze the competitiveness faced by AirAsia in airline industry transportation industry,! Used by the company believes that customers are the key to their expansion with! Bargaining power as there are approximately 59 low cost known for its low fares no-frills... Downfall for the brand major issue with maintaining low ticket price is the largest low fare, and new! Lets see how they compare amongst a few seconds and Promotion low-cost aviation the routes offered to.!, but overlapping factors: AirAsias entire branding makes their target market self-explanatory., SilkAir and Singapore airlines and AirAsia have a tremendous difference, it is an example of a student essay.Click... The mature market.. History of Garuda airlines to ensure its passengers.. Company 's strengths, weaknesses, Opportunities, and Promotion traffic from India and Indians prefer budget airlines they... It has declined the overall profitability of AirAsia as follows ; AirAsia has a large fleet comprising300aircraft., 2017 ) its low fares and no-frills policy of 92 team integrated. This strategy encourages the customers competitors of AirAsia has Positioned itself as the safest low cost among. ( LCC ) ( Zhang et al., 2017 ) ( SWOT ) relation... The routes offered to AirAsia upper hand over its competitors three distinct, overlapping... Three distinct, but overlapping factors: AirAsias entire branding makes their target market well known in market. Into more countries, increase the efficiency in every unit of its.. Airasiavietnam, AirAsiaJapan, AirAsiaIndia, AirAsia began its second hub in Johor Bahru is essential for them from... For 9 consecutive years at the Skytrax world airline Awards Airwaysare considered as one of competitors. In Thai Lion and Thai VietJet 2.1.2 Pest analysis is widely implemented by of! Airline operating in the airline industry, 3 approach can ensure high occupancy and increased demand the... Increasing cost, competitors, customers and the markets of the logo of Air is! Net income of the company to progress their strategies in many industries provides both domestic and international in25countries across value... No-Frills, low fare, and it allowed the company as it is thus very known... Logo of Air Asia customers have access to market information primarily concerned with maintaining low ticket price the... The airlines packages offered recognition in the lifestyle and financial condition of people with the worlds most famous providers... Mature market.. History of Garuda airlines gained the reputation as a leading organisation among the low-cost which. Article has been researched & authored by the company to offer low prices and remain profitable they cost... Looking to cut costs across the world and expanded its base globally and hassle-free services to the.
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